Hot off direct bookings

Big online players like Booking.com and Expedia are attracting an increasing share of the hotel market. With their accessibility and marketing efforts, they are increasing reach and conversion among hotel guests. But it also leads to commissions and dependencies. Indeed, the ever-expanding hotels are thus also losing their grip on valuable guest data.

From recent research by Hotrec, the European Hotel and Catering Association, shows that only 52 per cent of all European hotel stays in 2017 were still booked at the hotel itself. That is more than 3 per cent less than in 2015. The number of rooms booked through online travel agents rose by the same percentage at the same time. Booking.com handled two-thirds of these bookings. No wonder that also Airbnb is now focusing full force on the hotel market.

The hotel industry is watching this development with dismay. Not only because of the commissions. But mainly because OTAs also manage the valuable data of guests. Whereas a guest at a small-scale hotel is often followed with interest by the hotel staff, this is already much more difficult at larger hotels. Without this data, it is extremely difficult to get to know your guests better. Developing personalised communications and services, to boost the loyalty of those guests, therefore becomes almost impossible.

How do you encourage direct bookings? Of course, this starts with the optimal user experience of your website in general, and the booking process in particular. When was the last time your website was thoroughly vetted by a UX expert? Is it ready for voice search? Are guests enticed with personalised reviews? These are investments that quickly pay for themselves. Then, of course, get an immediate look at mobile check-in options for direct booking guests.

Another important condition for attracting 'direct' bookers is the best price guarantee. Communicate honestly and clearly That guests will always get the best price if they book on their own site. Pair this promise for extra persuasion with attractive extras, such as a welcome with a drink or a free shuttle service to nearby crowd-pleasers.

From this starting point, hotels can pull out all the stops to convince guests to book direct more often. This can be done by increasing the number of participants in their own loyalty programme. A recent survey by Kalibri Labs shows that loyalty members taking advantage of discounts and perks still bring in significantly more money than guests booking through an OTA. Also because these members often cash in the benefits offered in the form of upgrades or extra nights.

In the long term, however, this strategy only works if the hotel succeeds in further developing its relationship with the regular guest, Kalibri researchers note. The focus here is no longer on just the stay, but on the entire guest experience. Not surprisingly, many hotels are working on options to be able to book additional travel components and activities for guests.

For instance, the hotel can also start alerting guests to interesting attractions with clear waiting times in their area. Or with other experiences that match the personal profile. Does the guest regularly eat in their own restaurant? Then you might make him happy with a personalised private dinner, in his own hotel room. Does the guest regularly visit the hotel's wellness facilities? Then she might be interested in a relaxing massage. Look carefully at the available data and experiment with new possibilities.

Like any data-driven business activity, it is advisable to start small, and scale up proven success wherever possible. That way, you will naturally learn which guests are sensitive to which extras. And how best to offer these. This way, the hotel not only generates extra income, but also increases its relevance to returning guests. A very effective way to keep 'direct bookings' up to par.